Yes, thank you. A very warm welcome to everyone to discuss Mahanagar Gas Q4 FY '26 results.

It is our pleasure to be able to bring to you the management of Mahanagar Gas, led by Mr. Praveer Kumar Srivastava, Managing Director; Mr.

Sanjay Shende, Deputy Managing Director; Mr. Rajesh Patel, Chief Financial Officer; and Mr.

Rajesh Wagle, Senior Vice President, Marketing. With these words, I would now hand over the conference to the Mahanagar Gas management.

Over to you, sir. A

very good afternoon, and welcome to the earnings call of Mahanagar Gas Limited for the fourth quarter of the financial year 2025-2026. I would like to thank you all for attending our earnings call today.

Due to the supply disruptions arising from the recent ongoing geopolitical crisis in Iran and wider Gulf region, which has adversely impacted LNG facilities and created significant challenges in the global LNG supply chains, particularly cargoes routed through the Strait of Hormuz, our 100% DPNG and major part of CNG requirement is supported by domestically produced gas, ensuring 100% supply to these customers. Gas supplies to industrial and commercial customers is partly curtailed.

Prices may be affected due to global indices in the near term; however, they are expected to improve over time. MGL continues to create CGD infrastructure across its business segments in the licensed area.

During the quarter, 143,997 domestic households were connected, and thus we have established connectivity for nearly 3.21 million households. We have laid 138.48 km of steel and PE pipeline, taking the total length to over 8,320.43 km.

We added 28 CNG stations during this quarter, and with this, we have 518 stations as on 31st March 2026. We added 334 industrial and commercial customers during this quarter.

As on 31st March 2026, we have 5,924 industrial and commercial customers. During the quarter, there is an addition of 34,854 CNG vehicles, and now we have more than 1.28 million CNG vehicles registered in our geographies as of 31st March 2026.

During the year, 342,157 domestic households were connected, and thus the company have established connectivity for nearly 3.21 million households. We have laid 499 km of steel and PE pipeline, taking the total length to over 8,320 km.

We also added 52 CNG stations during the year, and with this, we have 518 stations as on 31st March 2026. We also have added 872 industrial and commercial customers during the year, and therefore as on 31st March 2026, we have 5,924 industrial and commercial customers.

We have added 118,590 vehicles during the year, and the total vehicle as on March 31st, 2026 is 12,84,828. Coming to MGL's operation during the quarter, we achieved overall average sales volume of 4.672 mmscmd as against 4.620 mmscmd in the previous quarter, which is an increase in 1.12%.

Current quarter volumes consist of CNG volume of 3.349 mmscmd, DPNG volume of 0.605 mmscmd, and 0.719 mmscmd of gas was supplied to the industrial and commercial customers. Compared to the corresponding quarter of last year, average overall sales volume has increased from 4.402 to 4.672 mmscmd, which is an increase of 6.15%.

Sales volume of CNG has increased from 3.125 mmscmd to 3.349 mmscmd, which is an increase of 7.12%. Sales for domestic DPNG have increased from 0.591 mmscmd to 0.605 mmscmd, which is an increase of 2.24%.

In case of industrial and commercial, sales volume has increased from 0.686 mmscmd to 0.719 mmscmd, an increase of 4.87%. Average gas sales for the current year ending 31st March 2026 is 4.585 mmscmd, whereas it was 4.235 mmscmd last financial year, which is an increase of 8.25%.

Sales volume in the case of CNG has also increased from 3.047 mmscmd to 3.67 mmscmd, which is an increase of 7.2% volume. Volumes for domestic PNG has increased from 0.556 to 0.590 mmscmd, which is an increase of 6.14%.

In case of industrial and commercial, the volume have increased from 0.632 to 0.727 mmscmd, which is an increase of 15.04%. RLNG supplies are disrupted due to West Asia crisis, and hence supply to industrial and commercial customers is curtailed to approximately 80% as per directives time to time, impacting the volumes adversely.

Due to major impact of supply of LPG, due to the crisis, government has taken all measures at the central and state level to push faster adoption of PNG, and this is a very positive move for the CGD sector in the long run, and MGL is going to seize this opportunity to roll out infrastructure and increase its volume. Net profit after tax for this quarter is Rs 132 crores as compared to the previous quarter net profit after tax of Rs 202 crores.

EBITDA from operations for the financial year 2025-2026 is Rs 1,451 crores compared to previous financial year EBITDA of Rs 1,570 crores. Net profit after tax for FY 2025-2026 is Rs 847 crore compared to net profit after tax for the previous financial year of Rs 1,041 crores.

I'm happy to announce that board has approved a final dividend, subject to the approval of shareholders at the AGM, at the rate of 180%, that is Rs 18 per equity share for the current financial year. Thus including interim dividend already paid at the rate of Rs 12, total dividend is Rs 30 per share for the financial year 2025-2026.

With this, I conclude and would now like to open the floor for the questions. Thank you very much for the patience.

Thank you. Good afternoon, sir.

I hope I'm audible.

You are audible. Please go ahead, Probal.

Sir, a few questions. Firstly, with respect to the supply disruptions, we understand from Petronet LNG also that Dahej utilization slipped to about 53% in March versus about 108% average in Jan-Feb.

In terms of our business, sir, did we also see this much of volatility in terms of our gas sales, especially in March? Can we just get a sense of how the business was in March?

As I think MD already said in his opening remarks, as far as domestic PNG and CNG is concerned, 100% supply has been ensured because mostly 100% of the domestic PNG is through APM, which is locally produced. As far as CNG is concerned, it is also majority is out of domestically produced, and balance was assured through pooled gas mechanism, which was announced somewhere around 9th of March.

As far as industrial and commercial customer category has been concerned, roughly 80% supply was maintained, curtailing around 20%, within which probably some time-to-time directives have changed to ensure that small commercial restaurants, schools, colleges, crematorium, etc., should be supplied 100%, and wherever large industrial customers who can afford to switch to either alternate fuels or who can afford to pay higher market price prevailing at that time can be given. Overall there was not much of an impact.

Maybe after 9th of March, there were two, three days which were holidays, there was no practically impact. Second fortnight maybe—

Overall in the month of March, we lost about 1.25, 1.3 lakh scmd out of let's say Feb average of 5.75. About 20-22% volume we lost.

This is in case of industry.

This is in industry,

yeah, excluding the commercial.

Commercial, we managed to maintain supplies because many of them were going to critical customers, hospitals, canteens, messes of government institutions, schools, etc.

Right. Right.

Especially it was the large industries where the supply was curtailed a bit.

Sir, is it if I could—sorry.

However,

whoever

was ready to take at the prevailing price, that also we have given. Under the normal this, we curtailed the supply to around 80%.

Yes,

there were some

10 or 12 customers, industrial customers, for whom gas supply was very critical. They had requested us for you source any market-price gas, we are okay.

For them, we managed to source a small volume separately, and that they offered to pay a premium.

Got it. Sir, is it fair to assume that April, May has seen similar kind of volume and supply levels that we are seeing now, or has there been any change in the environment?

April is more or less similar as far as industry goes. May, let's see.

May has just started, but we are expecting maybe some small improvement to happen.

Got it. The second question, sir, was with respect to sourcing mix.

You already mentioned about domestic PNG and of course most of CNG. If I can just get a little bit of granularity out of the 4.7 mmscmd total sales, is it possible to sort of split out how much of let's say APM, and how much of Henry Hub linked, and how much of spot we sort of sourced it from for this quarter?

APM, which is anyway available 100% for domestic PNG as well as including CNG, was in the range of around 1.6 mmscmd. Okay?

NWG and pooled gas is another 0.73 or 0.75. Okay?

HPHT, we could source apart from the term contract maybe through exchange, etc., which was in the range of around 0.9.

Okay?

HH, this I'm talking about March only, very specifically, not quarter.

Okay. March only.

Got it. Okay.

Because

there was a disruption only in March, okay? HH was curtailed to a slightly lower level,

maybe

to 50% of our 1.5 contracted quantity.

We had to

rely for some quantity on spot as well. If you wish to know specifically for the quarter, maybe, apart from small amount of—because see, it will get averaged out.

Small amount of pooled gas was there. Yeah.

On an average.

No, I think

this

March is useful, sir. March is useful because that will probably be the sort of template for Q1 from what I understand if the situation persists.

This is fairly useful.

The pooled and NWG quantities are depending on availability has been changing. Really not able to give you any clue that the same level will continue in April or May or going forward,

because depending on

the availability of gas, how things move, how the supplies come from Gulf, this will keep on changing, and we have to live this time in uncertainty.

Right, sir. One last question, if I may.

Any price changes envisaged on the CNG front in going forward? Is it something that you're looking at?

We have already taken a price increase on 22nd of April, Rs 1.

Okay?

Let us see how does alternate fuel prices move, specifically for CNG since you asked. We will take a call, and definitely we can sustain for some time the higher cost.

If it is slightly longer or it sustains for a longer time, we will be considering appropriate price rise in CNG as well as in domestic PNG if required. Compared to probably last quarter, definitely because of the Brent-linked alternate fuels are already high, there is an improvement in the realization on I&C sector because we follow alternate fuel-linked pricing.

Yeah. Right.

Right. Right.

Perfect, sir. That is extremely useful.

Thank you so much for your time. I'll come back if I have more questions.

Sure.

Thank you.

Thanks for an opportunity, sir. Sir, just continue with the previous participant question.

APM, HPHT, NWG, HH, if we add up all them, it is giving closer to 4 mmscmd only. Remaining was spot?

Is it a correct understanding?

We did sign some of the term contracts in the beginning of Jan. Some is also signed during April, okay?

Due to the disruption, the quantity may not come fully. Your understanding is correct, but spot is likely to be in the range of 0.4 or so, not 0.7 as you are expecting.

Okay. Fair enough, sir.

Sir, recent price hikes in DPNG and the CNG, how much percentage it has covered up the increase in gas cost of the last 2 months? Any broader idea if you could give us?

Last 2 months?

We have seen the gas cost has gone up from March and the April only if I'm not wrong, and we have taken DPNG and the CNG price hikes in month of April. Just wanted to understand how much percentage of that increase in gas cost we have already covered up or the burden has already passed on to the consumer, and the partial burden we have taken up?

Any probable number if you could share?

See, if you consider domestic PNG, as it is 100% through APM supplies, and there is a 25 cents increase from 1st of April linked to this whatever Kirit Parikh committee circular, okay? So 25 cents plus there is a upside in the cost due to exchange rate.

Considering both this, we have taken a hike of Rs 1.5 on 22nd April 2026. Before that also, there was some hike, but little earlier than this.

That more or less covers the DPNG increase. We also consider that, okay, for some time exchange rate had spiked, but it could stabilize, we didn't wanted to take a complete hit.

We will watch out further how does exchange rate move from here. As far as CNG is concerned, I think you can understand that it's a temporary volatile situation, there could be increase in the gas cost.

As far as pricing is concerned, we would prefer to keep it in a stable manner, and we might absorb this short-term volatility. If it stabilizes at a higher level, definitely we will take a call to increase price.

Also considering how is the movement on alternate fuel, petrol, diesel, we will certainly take a call and do the pass-through. To be very specific to your answer, CNG, yes, since we have taken only Rs 1 increase, and prior to that probably in February we took some increase, it's certainly not fully passed on.

Cost increase considering mixing of pooled gas and current Brent level, other gas prices have gone up, it is not fully passed on. We consider that this is a short-term phenomenon.

It should improve going forward.

Fair enough, sir. Sir, next question as per the 9th March government notification, CGDs will get the supply based upon the last 6 months' average sales volume.

Now the question comes here, how are you managing the incremental growth in the CNG and the DPNG? Are we sourcing from the spot, or you just mentioned about the recently contracted the LNG which you are still not getting?

Are you right now managing the incremental CNG sales and the DPNG sales volume through the spot?

Any term contract during this time can go under force majeure, whether recently signed or signed earlier. That impact was there on us as well, okay?

Definitely for CNG as well as domestic PNG, we might have to source some amount of spot.

Sir. Lastly, sequentially, our other expenses has gone up.

Is there any one-off item which has lead to increase in other expenses?

You are referring year-on-year, then I can tell you. See, CNG volumes have gone up by almost 8%, directly variable expenses like power and fuel, LCV transportation, dispensing charges, etc., has gone up in line with the volumes increase, okay?

Other than that, there is an increase of around Rs 30-35 crore in case of employee salaries, which mainly consists of there is a provision, actuarial provision on account of new wage code, which is in the range of around Rs 14 crores. Maybe in the same employee category, there was a normal increment, which consists of around Rs 11 crore, and some marginal increase on account of some staff welfare activity.

Other than that, miscellaneous opexes, mainly repair, maintenance, and some of the rent for the CNG plot or stores, etc., which we have hired, and some of them are already commissioned, some of them work is still going on, has gone up. This is broadly is the breakup or reason for increase in the operating cost.

Thanks. Thanks a lot, sir, and all the best.

Thank you.

Thanks for taking my questions. I have a couple of them.

Firstly, sir, if you could give the breakup of commercial and industrial volume for this particular quarter, where did it stand in terms of mmscmd?

I think Mr. Wagle already said 0.57 was industry, and if my total was 0.719, balance is commercial.

0.57, balance 1.4, 1.5 lakh for commercial.

This is for this quarter. This is not a representative volume because despite demand, we had to curtail.

Even though we might have connected new customer, we have deferred because overall category was asked to be curtailed at 80%. Yeah.

Okay. Okay.

I just want to understand, see, till March, honestly, there wasn't really so much of impact that you would have faced, because by the time the government put in those restrictions, it was more towards the latter part of March, and pricing increases for many contracts like new well gas only happened later, right? At the same point of time, now that you're getting gas based on the allocations that everybody is at 80%, how does that work?

Are your old contracts still live? For example, the earlier contracts you had on Henry Hub, are you still getting gas at the same price, or there is a pooled price at which you get the gas required?

I think my broad understanding and probably that is the way supplies have worked is every contract has some supply-or-pay threshold or take-or-pay threshold, right? For the purpose of pooled gas, over and above the supply-or-pay commitment has been pooled and given as a pooled price to all the CGDs.

Balance gas has definitely come to all of us. There is a caveat: if there is a force majeure, even that can be reduced.

As far as Q4 is concerned, we have got up to supply-or-pay level, all the contracts we have received the gas. As far as you are saying that impact of this crisis not only at the fag end of the March, it was for the full second half of the March.

Second fortnight, we received pooled gas, and part of the first fortnight as well. It started around 12th of March almost.

I would say 2/3 of the month of March was impacted, and 10 days or 11 days was normal.

No, for example, sir, CNG, I believe you said—correct me if I'm wrong—0.7 mmscmd is what you are using new well gas for. That— No, no,

no. No, no, no.

I think Mr. Yogesh Patil from Dolat said the contract-wise and APM what I gave numbers totals to around 4.

Where did you source balance 0.7? When he says balance 0.7, it is meant for all the categories, not only for this.

Okay.

What is the new well gas number that you said? Sorry, I missed taking that number.

New well gas, I said in the second fortnight was in the range of 0.4, little more than 0.4.

That's about 10% a little 12% of your CNG requirement.

On that, for example,

gas price has gone up by 70% or so, right? It's now $14 or so right now for the month of May.

No, not really. Not so much.

It ranged maybe $11, $11.5. Maybe it spiked little bit in April, and then again it is looking down probably now.

Because you see, Brent also went up and then came down, and Indian crude basket also went up and came down.

The May price is based on April price, right? April average.

Yeah. Yes.

Okay. So—

In the price, no, the moment you change the weighted average source of gas, it may change. We are really not having any clue how does it get calculated.

Okay. I get that.

Sure. In terms of your blended price of raw material, that has gone up considerably in April, May as compared to where it was in March, right?

Is that correct?

Certainly, yes, because if pooled gas hovers between $11 to $13 and other indices are also up, because see, earlier quarter, we were below even the ceiling, and because Brent was hovering $60, $65 kind of a thing. Now if Brent is at $90 or $100, there is going to be impact on the gas cost.

Also exchange rate went up and slightly it has now come down, so that is saving a little bit.

Okay. Given all of this, what is your volume growth guidance for say FY '27, and also your margin guidance, if any?

Then, okay, and as things normalize, do you maintain guidance beyond the war to be how it was historically? Could you repeat those numbers?

See,

if you look at whatever blessings in disguise has happened due to this war is circular or gazette notification dated 24th of March where a lot of functioning of CGD has been eased out. Also there is a reduction in the road reinstatement charges.

Permissions are becoming faster. If you apply for a road digging permission and it is not received within specified time, you can assume it as a deemed permission and start your work.

RI charges has been slashed down, and center has specified very lower RI charges. It will save on the cost, it'll faster my network creation.

We are very positive that there will be certainly very good boost to the volumes, especially in PNG, domestic PNG, industrial and commercial customers, because we will be able to connect the customers faster, including even private societies where you have a neighboring society who was not giving earlier permission. According to that notification, even private property also they have to give permission or give reasoning.

There are a lot of enablers which have come for CGD industry, and that will definitely put us on a fast track as far as laying pipeline and connecting the new customer is concerned. Our guess is if I have clocked 8.25 overall volume growth this year, it should be certainly more than that.

We should be able to cross double digit if this remains for a longer time and we are able to seize. Of course there are constraints in terms of how do you get the required amount of labor, plumbers, contractors to execute that work, okay?

Because all the CGDs are eyeing for the same pool of resources as far as pipeline laying abilities or the labor available in the country. Considering that, our view is if we do faster connection, volumes will be maintained or it'll be increasing.

Now coming to margins, I think it's a very difficult call as of today because nobody knows how long this kind of a situation and supply of RLNG will improve. Our endeavor is if there is a room compared to the alternate fuels, we will be certainly trying to take required price increase to pass through the gas cost impact.

Maybe our wish and endeavor could be we will maintain more than Rs 8 EBITDA per scm, but we'll have to consider multiple factors before we decide to do any price changes. However, one good factor is if Brent is remaining slightly higher, it is helping us in industrial, commercial sector realization much better compared to earlier two quarters, I would say, where Brent was in the range of $65, $70, and now it is at least $90, $100.

Giving a number is really difficult as of now. Sir,

more than Rs 8 in FY '27 will possibly mean an exit of closer to double digit, right? Because first quarter is more or less in front of us, and that's going to be most likely lower than what the 4Q margins are.

More than 8 average for FY '27 will require a reasonably high margin exit for the year, right?

That's why I'm saying that it is very difficult to give a number. Our endeavor, and let's hope that things normalize.

I'm saying that in the long run, this is going to be a very good opportunity for MGL to create infrastructure and volume and margin both.

Our focus on increasing infrastructure and volumes will be at a slightly higher priority than maintaining margins. If we have to temporarily lose margins for gaining volumes, I think we're okay to do that, because margins can be changed pretty quickly, but these kind of opportunities to grow infrastructure, volume, they come pretty rarely.

Sure. Post-war normalization margin guidance, sir, before I kind of let go?

See, another positive thing on margin is earlier you had a lot of volatility in Henry Hub, whereas we have 1.5 contracted quantity. Even we are getting half of that at least, and I hope that there is no force majeure and we continue to get that, which has stabilized below $3.

There is already a respite in terms of pricing of Henry Hub, which is almost 1/3 of our contracted quantity, a little more than 1/3 of our contracted quantity. There are multiple factors which are against, and some are positive also, I'm saying.

Sir. Thank you.

Thanks for answering my questions.

Sir, thank you for the opportunity. A couple of questions from my side.

One is on the Henry Hub, the volume that we are getting, is at HH linked and the earlier terms only, or is there some change in the pricing that we are getting it at? That is first.

Second, sir, you mentioned somewhere that while you can add more commercial and industrial users, but you are not adding it currently because of the restriction of 80% of total gas in that sector or something, but we have the opportunity because there is demand, how does that tie? These are the two questions, sir.

See,

first, Henry Hub, it is formula linked. There can be change in the quantities; the formula and the pricing remains same linked to the index and whatever constant and the slope you have, there is no change for whatever supplies you are getting, okay?

What I said in case of industrial, commercial connection is we will be connecting the customers faster. Because of the overall 80% curtailment of the volume, unless I get some market-linked volume and the customer is ready to take, volume may not increase.

Okay?

On commercial side, there is a good potential for increase, because the situation with LPG is not very good. A lot of demand is there for piped gas, even at a premium.

We are getting a lot of registrations. Previously the registrations would number in hundreds; now they're coming in thousands.

With the ease of infrastructure laying, pipeline permissions, etc., we'll connect these customers. Overall commercial volumes are not that high.

Plus the government is also telling us that give uninterrupted supply to critical commercial customers who are involved in food and—

Small restaurants are falling in that critical customer category.

They are continuing to get their requirement, and that sector is growing very high. It is only some large industries who are facing some curtailment, and that too, at present, I think the curtailment level has reduced significantly in the month of May.

Hopefully, if that continues, we'll be back to our normal I&C volume growth.

Lastly, sir, on spot LNG, if you can highlight that at what price, from what region, how easy is the availability? Whatever color you can give on the spot LNG availability for you and the country at large also, that will be helpful.

Spot LNG, we are sourcing through IGX or wherever we have a framework agreement with multiple suppliers, we keep on checking. If somebody has a quantity, then we get it.

That's a two mechanism through which we get spot LNG. As far as pricing, I think it is available in the public domain.

It is ranging between $11.5 to $13, sometimes $14. That keeps on changing depending on the volumes available, depending on the time at which you are trying to approach the market.

We don't source cargoes directly, it's usually through aggregators.

Got it, sir. Thank you, and all the best.

Hi. Good evening, and thanks for the opportunity.

When you say that you expect more than 10% growth in FY '27, I think you also said that industrial is down 20%. Are you expecting much higher growth from domestic PNG as well as CNG?

If you could break out the expected growth rate segment-wise also?

I think I would like to correct the understanding. What I said is since infrastructure laying has been eased out, and there is a demand increasing for PNG due to LPG curtailment, definitely we have a opportunity to connect more and more customers.

Going forward, if we are able to work and lay the infrastructure and connect the customers, this year we have done 8%, we can definitely, if number of customers get added faster, we can achieve 10% volume. Not necessarily I'm saying 2026-2027.

The delta will probably come from piped gas.

CNG maybe

at the usual normal rate of growth.

Yeah.

Sure. Piped gas then is it possible then that we add maybe a lot of customers and maybe we get 20% or higher growth rate in piped gas volume this year?

That seems like a real possibility.

If you see industrial, commercial last year, I'm saying 2024-2025, we grew by 24%. This year also we have grown by 15%.

With this happening, if our ability to lay and connect is faster because of a lot of easement on the road digging permissions, etc., we expect that we will be able to do better than in the past.

Again, the one more caveat in it, because we are already into May now. The monsoon onset soon.

Once the monsoon starts, then it's not going to be possible to lay too much infrastructure on public roads. Inside housing societies, inside industrial premises, yes, that work will continue.

There would be some slowing in growth in June, July onwards once the rains hit.

Basically, because LPG dependence is very uncertain, there's a lot of demand for commercial LPG. Household, if you see the notification, wherever there is a gas connection available, if somebody's using LPG, that will not be allowed beyond 3 months, and he has to mandatorily opt for PNG.

In our view, that will help us grow our domestic customers also high compared to what we have done in the past. Okay?

That will result in definitely volume growth.

Sure. I guess then capex would also be higher this year if you're looking to lay so much of a pipeline infrastructure?

Some capex may get reoriented. As Mr.

Wagle said earlier, we will be focusing on laying of pipeline infrastructure and connecting the customer. We may—

RI.

RI and there is a reduction in the RI cost substantially. That will get saved.

Overall, there could be an increase, but not very substantial, because RI has almost come down by more than half.

What is the guidance that you'll give for capex then for '27?

Certainly it will be whatever we have been giving, Rs 1,000-1,200 crore range. It can be a little more than that if we are able to do and.

See, as I also said, there is a constraint on the labor supply, plumbers, etc., because every CGD is now in the same situation. A lot of poaching for the resources is happening.

There could be some impact of this crisis on the availability of material also. Unless labor and material both are available, matlab depending on the availability of both these, we will be definitely connecting more people and laying infrastructure.

Only one uncertainty which used to be there in the past on capex, which is will we get permissions or no.

That has gone away.

Got it. Sure.

Hi, sir. Thanks for the opportunity.

Sir, the recently contracted volume that you talked about which we signed in Jan and April, are these Brent linked?

Yes, Brent linked.

What is the logic of signing Brent-linked contracts when Henry Hub is $3-4 per mmbtu cheaper, I think?

These were contracted sometimes before, okay? To balance our portfolio of industrial, commercial supply with Henry Hub, we are more skewed towards Henry Hub.

In the shorter period like a quarter or two quarter, things can move over and here and there. If you have balanced portfolio, it helps over a longer period of time.

Okay. Sir, why was Henry Hub volume cut to 50% in March?

Is it going to the pooled gas?

Yes. Must be going to the pooled gas.

We don't get any this, but our supply is curtailed. Definitely where will GAIL will get the gas from all the term contracts which they have?

They will pool by curtailing the supply to every buyer to the extent of supply or pay, and they will put it to pool for matlab supplying to CGD requirement. We do not know.

We don't have direct visibility on that, difficult to answer.

Any idea when this pooling mechanism will be discontinued? Because Henry Hub is the cheapest source of gas for you, and this has been curtailed by 50%.

I think all depends on how fast and when West Asia crisis are over, which nobody can today,

I think. Sir.

Sir, do you have any flexibility in terms of increasing HPHT gas? Because new well gas is now much more expensive than even the HPHT.

Anyway you can increase HPHT in place of new well?

HPHT gas has been coming through IGX in small quantities, and there are some old contracts which are expiring. Whenever they come up for rebidding, since CGD has a priority now, we will be hopeful that we will get some HPHT in coming months.

Definitely there will be some availability of HPHT in this quarter or Q2.

Sir. Lastly, how is the pricing of pooled gas derived?

Pricing of?

The pooled gas.

We are not privy to that, we don't know.

Pooled gas is basically the imported gas, right? Probably the weighted average of all the volumes that come to GAIL?

I think it is anybody's guess. I will not be able to.

It could be some local also, I don't know.

GAIL would be the best.

You should ask in GAIL call.

Sure. Sir.

Lastly, do you have a number on how much volume upside we can see on DPNG conversion because of LPG supply not being there and also easier access to lay down pipelines, maybe not for the near term, maybe for a longer term, what is the incremental volume upside from there?

Look, historically DPNG has not grown very fast, about 6% or so. Definitely this can go to double digits.

Again, one thing we need to keep in mind that our penetration in the city of Mumbai, for example, in whichever buildings we are at, is pretty high, almost 90%. Residual potential is relatively less.

In our expansion areas, if we go towards the municipalities which are in the suburbs and further away, there per capita consumption comes out to be lower. Today if we have 2 million burning DPNG customers, we are trying to add at least 4 or 5 lakh additional to that in the shortest possible span of time.

Incremental additions will not give you the same per capita consumption because this is going out in the extended suburbs. Definitely the volume contribution, we'll expect to be more than 10%.

I think apart from even extended suburbs, in the existing area where it was gasified say 90%, and 10% people who stay 6 months in India and 6 months outside or somewhere else outside Mumbai, since they will be mandated to switch to PNG because of the government notification, their average consumption also will be low. I think the additional connections will not ensure the same per capita consumption.

Yes, even if we do a 20% increase on the customer base of actively burning customers, that may translate into a maybe 12% or so kind of increase in volumes in DPNG.

Sure, sir. Thank you.

Thanks for the answers, sir. Thank you.

Bye.

Thank you for the opportunity. I think the first question was answered.

I just have a second question which is more of housekeeping. Can you please break down the CNG vehicles added in terms of buses, cars, autos for FY '26?

Year-on-year,

we have added taxis 26,000, private cars 48,238, three-wheelers 33,200, private buses 223, minibuses 188, we have MSRTC buses 48, trucks 318, tempos 105, small commercial vehicles 7,400, and two-wheelers 2,465. In total, around 1.18 lakhs of CNG vehicles have been added in this financial year, last financial year.

Okay. Thank you.

Hi. Thank you for the opportunity.

Good evening, sir. Sir, first one is a clarificatory one.

If you could just for the sake of clarity, reiterate what was our gas supply break down for the fourth quarter and also for the month of March? I suppose you gave it out for the month of March.

Then if we can put the contracted quantity in perspective as well. That would be the first one.

You want March again you're saying, or?

No, if you can first give out the contracted quantity that we have against that, how much did we get in the fourth quarter and in March? That's what I'm trying to understand.

Contracted quantity, how much we got in the March? Just a minute.

HH, we got around in the Q4, 0.78.

Okay. Against the contract of 1.5 you said, right?

Correct. Yeah.

You see, it was also done by us in some months purposely because HH price was high. I'm saying this quantity will not matter, because depending on the relative price in the next month or next quarter, we will keep on changing.

Because you saw in January, February when Henry Hub was as high as $7.5, we did not take

even

contracted quantity, and we took spot. Still, you are asking for a figure, I'm giving you.

Sure, sir.

In the month of in the

in the month of March, how much was this quantity, the term HH quantity?

In the month of March, I said some time back. Sorry.

You're saying HH in the month of March? HH, I'll tell you, for the second fortnight was little more than half a million.

Okay.

First fortnight, it was almost 0.75 or 0.78. Average could be 0.65 or 0.7.

Okay. Second fortnight was 0.5, and first fortnight was 0.7, right?

Yeah. You can do a weighted average.

Sure, sir. If we can have the same figures for your HPHT contracted quantity as well as other term LNG contracts?

HPHT, whatever we get, contracted or through IGX, I have the combined number. As I said earlier, in the month of March, we have taken almost 0.9 HPHT.

Okay. In the fourth quarter?

Fourth quarter, combined HPHT, 0.7 average.

Okay. Same figures for, sir, APM and NWG for the fourth quarter and for the month of March again?

No. APM for the full quarter on an average was more than 1.73.

For March, first fortnight could be in the range of 1.7, but second fortnight was somewhere around 1.56 or something.

Okay. NWG, sir?

NWG, both you can take little more than 0.4 quarter

as well

as—

For the quarter.

Both, March also. Little more than 0.4.

Was not much difference between, because balance came through pooled gas.

Sorry, sir, you had initially mentioned that NWG and pooled was around 0.73 to 0.75 for the month of March, right?

I said NWG plus pooled I had said, okay?

Okay. NWG was 0.4.

Little more than 0.4, yes.

Remaining was pooled, right?

Yeah. As I said earlier also, these quantities keep on changing.

There is no guarantee.

No, understand, sir. What I'm trying to understand is that in the fourth quarter, basically pooled pricing came in only in March, right?

Yeah. When we are looking at the quantity for the entire quarter, the effect of pooled would be only in the month of March.

What was the NWG quantity for the entire quarter? It was still 0.4 only and—

Pooled was there for some part of first fortnight also. Not only the second fortnight.

March, yes, you are saying roughly 2/3 of the March was having pooled gas.

All right, sir.

Hi, sir. Thanks for the opportunity.

It seems that there's a 1% year-on-year fall in your PNG domestic volumes. Is there any specific reason for the same?

There is no fall in domestic PNG volume. Are you talking about per capita consumption, or you're talking about absolute volume?

Absolute volume, sir. Q4 to Q4.

Domestic volume year-on-year has grown by 7% or something, 6.6%. There is an increase in domestic volume.

There is no fall in the domestic volume.

Okay.

6.14% increase year-on-year in DPNG and 15.04 in I&C. Yeah.

All right. No problem.

Thank

you. The next question is from the line of Yash Mandhana from Qvitas Investment.

Please go ahead.

Hi, sir. Am I audible?

Thanks a lot for the opportunity. Most of my questions are answered.

Just one. If we look at a longer-term version, we were sort of talking about the LNG prices sort of going downwards in, say, 2-3 years because of the increased capacity coming in US.

What do you think would be the price in the long term at which it would become attractive for most of the Indian people to sort of switch? Last time you were mentioning somewhere around $9 to $10 would be the price at which price-sensitive customers would convert.

What would be the price right now for you?

Sir, it totally depends on what the alternate energy sources or alternate fuel prices are. 10-15 years back, $5 looked very high.

Today $15 is normal. So—

Okay. Basically it will be a function of, say, petrol, diesel versus LNG, right?

LPG and industrial fuels.

LPG and industrial fuels as well. Okay.

Understood, sir. Thanks a lot, sir.

Thanks a lot for that piece.

Hi, thanks for taking my question. I just wanted to understand that when the Brent goes from, let's say, $60 to $95, right, there is of course an input cost pressure that we get because of our sourcing mix, and there is an output price benefit that we get from our I&C because it's linked to the Brent crude.

As a net impact, generally is this beneficial for our company, when it goes from $60 to $95 or it hurts us? That's what I wanted to understand.

See, as you rightly said, realization will go up, okay? When you say hurts is because if my input gas cost is linked to Brent more proportion, then it may remain similar.

We have a mix, and mix is skewed towards HH, which has remained low while Brent is higher. Under this scenario, it should benefit us in terms of net margin.

Especially in the I&C segment, on absolute terms, the increase in gas cost is lower than

realization,

so that way higher oil prices helps us in I&C.

Correct. In I&C they do help us, but in the other segments where there's an input cost that gets impacted because of the sources which are linked to the Brent, that is also going to have a negative impact at an overall level.

At an overall level, I just wanted to understand.

No. See, as far as domestic PNG is concerned, it is fully through APM, which has a ceiling.

Even CNG 1/3 of the quantity is through APM, which has a ceiling. If I have 0.9 roughly HPHT, which is also ceiling driven, it doesn't impact directly.

Directionally if you look, if there is sustained high level of Brent, then after some time petrol, diesel prices do go up. Yes, the government will stabilize for some time, but that cannot happen indefinitely.

Right.

If Brent is up and petrol, diesel prices are kept artificially at a lower level, then I will certainly get impacted.

That is a temporary impact.

Otherwise, it is not there. Brent going up generally will help.

Generally, it's good for margins.

Okay.

Hi. Thanks for the opportunity.

I just wanted to understand the CNG vehicle additions seem to have slowed down a bit as we can see from the Vahan data. What are the reasons for this slowdown?

Which period you're referring to, Nitin? Amit.

Generally I was looking at the last 6 months. See,

if you see last two quarters, we have added almost 67,000 vehicles, okay, which is quite a high number compared to earlier two quarters, which was roughly 50,000. In fact, there is an increase,

not decrease.

Okay. Maybe I'll just reconnect with you.

I thought I saw the data has been down, but maybe I'll check and reconnect with you.

These data are available on our presentation as well, you can see them.

Sure. Sure.

On the margin, if I can just reconfirm, you've mentioned that the near-term margin is a bit lower than what it was in Q4, right? What you're seeing right now in April and March, in April and May, you said that the cost price increases are not fully covered for the cost increases.

That understanding is correct, right?

Yeah. Specifically in case of CNG, complete pass-through could not be done.

Yeah. Hello?

Yeah. Before we end the call, I would like to mention that some of the statements made in today's discussion may be forward looking in nature, and we believe that expectations contained in this statement are reasonable.

However, these statements involve a number of risks and uncertainties that may lead to different results. We urge you to consider that quarterly numbers are not a reflection of long-term trends or indications of full-year results.

With that said, I will now hand over the call to the management for closing remarks. Over to you, sir.

Thank you everybody for joining us on this call.

Thank you.

Thank you so much. Thank you.

Thanks so much.